Does the Banking Industry Need ISO 27001 Certification?

Why should banks achieve ISO 27001 certification?

• What is ISO 27001?

An ISO 27001-certified Information Security Management System (ISMS) can manage the different information security systems used by banks. It’s an internationally recognised standard published by the International Organisation for Standardisation or ISO, and it provides a framework that companies, irrespective of their size and industry, should utilise to incorporate a customised and efficient ISMS.

ISMS manages IT security and information security across company departments, and ISO 27001 is globally the most demanding information security standard.

• Information & Regulation in the Banking Sector

Banks need to process and store huge amounts of data, and most data is sensitive or very sensitive in nature. Banks must have proper control of this data and also ensure the data processing and storing methods are compliant with relevant laws and regulations that govern data security and privacy.

Information security and privacy compliance have many different requirements in the banking sector, making dealing with information security a daunting task. Though every industry is bound to follow laws, regulations, and standards, the banking sector is one of the most highly regulated sectors.

Rapid advancements in financial technology has provided many complexities and scopes to comply to, and opportunities to take advantage of. The banking sector needs a single and effective management system.

• ISO 27001 & Banking Sector

A quality assurance consultant knows that different regulations, requirements, and laws related to security can be standardized through the ISO 27001 Standard.

An ISMS offers a framework that brings multiple laws, regulations, and contractual requirements together. This system has a simple but well-planned design that incorporates requirements from many other security guidelines.

When a bank uses a single security management system, it will initially require better design and planning. This system offers better governance, greater efficiency, and effective risk management. Banks must identify risks, gaps, and opportunities to properly implement an ISMS.

Moreover, an ISMS allows banks to achieve ISO 27001 certification, which will show that an independent body has evaluated the efficiency of the bank’s information security controls.

• How ISO 27001 Benefits Banks

Organisations that need to abide by many laws and regulations, like banks, have found an important benefit from ISO 27001 certification, namely, compliance. Having ISO 27001 certification implies that the bank can:

1. Demonstrate controls have been implemented accordingly,
2. Maintain an independently certified management system (ISMS).

A Final Takeaway

Clearly, an ISMS helps banks to streamline and organise their information security controls, confidential data processes, and data storage processes.

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